Reasons to invest in the project:
- Target total pre-tax return of greater than 20% per annum over 5 years including income distributions (pre-tax, net of fees)
- Targeted quarterly income distributions of 9.0% per annum (pre-tax, net of fees)
- Targeting a portfolio of established, resilient motels with strong operating track records
- Tax efficient and transparent trust structure
- Highly fragmented industry, ripe for consolidation
- Experienced team with a track record of successful execution
Project Description:
Investment Highlights
- 20%+ Annual Returns: Targeting total returns exceeding 20% per annum over five years (pre-tax, net of fees).
- Quarterly Distributions 9% - 11% targeted income per annum (pre-tax, net of fees).
- Diversified Portfolio: Goal to invest in 50+ resilient motels with proven track records, across towns, local economies, and accommodation types.
- Low Leverage: Conservative LVR target of 45%, ensuring financial stability.
- Transparent Trust Structure: Tax-efficient design with income and capital gain flow-through benefits.
- Proven Team: Experienced management with a successful execution track record.
- Independent Oversight: Independent Trustee governance with AFSL compliance.
Background
The Deltine High Yield Motel Fund offers investors access to a high-yielding, niche commercial property asset class—suburban and regional motels. By consolidating a fragmented sector, the Fund unlocks value through economies of scale, operational improvements, and innovative upgrades, providing diversification and income stability.
This Round
The Fund is currently raising $9.0M in equity, with a minimum investment of $100,000. Proceeds will fund two high-performing motel acquisitions:
40-Room Motel, Barossa Valley, SA
- High purchase yield of 11.0%
- Fully refurbished, strong operational track record
- Extensive facilities with operational upside
- Development potential on 13,162m² land
Busy Motel, 1 Hour North of Melbourne, VIC
- Purchase yield: 10.5%
- 76% occupancy, repeat corporate & tourist guests
- 4-star facilities and expansion potential
- 10 min drive from Puckapunyal Army base
